SAG-AFTRA New Media Agreement Explained
The SAG-AFTRA New Media Agreement is a collective bargaining agreement, or contract, between the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and producers of original episodic programming for new media. The SAG-AFTRA New Media Agreement covers commercials, original episodic programs (narrative content only) created and distributed for the Internet and mobile platforms, and interim use theatrical features only.
As the term "new media" has evolved over the past decade, so too has the definition that SAG-AFTRA places on it. Originally, the agreement was intended to apply to content sold or distributed primarily over the internet. However, as production technology advanced and the internet became the primary means for instantaneous content distribution, the boundary between new media and traditional content (such as cable television programs) began to blur. In order to prevent confusion and overlap between the various SAG-AFTRA collective bargaining agreements, the SAG-AFTRA New Media Agreement was amended to further define its exclusivity for new media use. The current SAG-AFTRA New Media Agreement states that the agreement applies to the use of a program in new media "in a manner that will not consign content produced thereunder to an outdated media format" and that further states that "new media" does not include content that is made available via a media format that is ‘outdated.’"
The SAG-AFTRA New Media Agreement applies to all live action and animation episodic programming other than news programs and programs that originate as theatrical motion pictures. Briefly , the SAG-AFTRA New Media Agreement says that for projects that qualify under the agreement, producers may pay performers either: (1) a signatory wage; or (2) an enhanced pension and health contribution. Important for independent producers, the amount that is considered "signatory wages" are dramatically reduced compared to standard television shows for programs produced under the SAG-AFTRA New Media Agreement – a major incentive to independent producers participating in the production of internet based content.
For productions with a budget of less than $250,000, the SAG-AFTRA New Media Agreement provides that for original program series, producers can pay performers as little as $125 per day or per episode for up to five episodes per season. For individual episodes, producers may pay performers as little as $320 per episode, and for individual performances, producers can pay performers as little as $50. For productions with a budget of greater than $250,000, the SAG-AFTRA New Media Agreement provides that for original program series, producers can pay performers as little as $400 per day or per episode for up to five episodes per season. For individual episodes, producers may pay performers as little as $1,500 per episode, and for individual performances, producers can pay performers as little as $250.
Who is Eligible for the New Media Agreement?
The New Media Agreement is not available to the entire universe of new media productions, but rather to a sub-set. The New Media Agreement covers only those productions where the following requirements are met:
• The production is produced by a covered signatory producer;
• The production is scripted or a performance in an unscripted format is required;
• The production runs 15 continuous minutes or longer;
• The content is distributed over the internet;
• The production is not intended as a pilot for a television series (television is defined under the SAG-AFTRA collective bargaining agreements and includes film, video, and print broadcast); and
• There is at least one signed SAG-AFTRA contract for a performer who provides services.
Advantages of the Agreement
The New Media Agreement provided SAG-AFTRA members with substantial residual increases and supplements for the use of their performances when their work ends up on streaming and other new media platforms. For initial episodes of original series and documentaries on new media platforms, the residual formula provided for a minimum 100% increase over the standard television residuals formula for each episode, with an additional 5% for each episode thereafter. Thus, if a production went two seasons, and had a residual formula based on foreign television, the annual residual for episodes one through four would increase by 5% each season. For series pilot payments for series that air on new media platforms, a member with principal performing time in the pilot received a minimum Supplemental Performance Fee of $25,000 (or 20% of the performance fee, whichever was greater) for principal performing time, immediately payable. Residuals are due for the use of the primary part of the pilot in subsequent episodes, including on any platform, regardless of whether the member performs additional work on the series after the pilot. The Creative Rights Amendment allowed performers to give notice to employers that they should refrain from using sponsors, advertisements, packaging or product placement which the performer finds offensive. Actors shall also be credited by name in all forms of television (including streaming), and the parties expanded the protections that actors have against the unauthorized use of their images. For the first time, professionals’ comments will be used to create a minimum number of courses offered on diversity so that the union will be able to refer members to the list, for ongoing training on issues of diversity. Due to the increase of online content, the SAG-AFTRA New Media Agreement provides that some projects no longer fall under the outmoded "low budget" or "ultra low budget" rules, but instead become signatory to the SAG-AFTRA New Media Agreement. This includes theatrical feature films produced for less than $10 million that feature 2 or more principal performers and made for a digital platform. This includes motion picture projects produced for non-linear audience distribution of less than $200,000 that feature 1 or more principal performers and made for a digital platform.
Recent Changes and Amendments
The SAG-AFTRA New Media Agreement has undergone a few updates since its inception. While it has remained consistent in its basic premise, it has added clarifications and amendments as the industry has evolved and experienced some of the pitfalls that were unauthorized by the Agreement’s clarity.
One of the most significant developments pertained to the one hour series. Originally, the terms of the New Media Agreement did not apply to programs with a planned or probable distribution time of 30 minutes, or less, only established television series. In 2012, the parties amended the Agreement, adding the following: However, without regard to such distribution time limitation, any exhibition of a New Media program that is more than seven (7) minutes in length shall be subject to the New Media Program terms set forth in Article 7J, covering Movies of the Week, Mini-Series and Specials, Sports Programs, Reality Programs, Documentaries and Children’s Programming.
In addition, with regard to compensation for one hour television series, the parties clarified that: Television series (one hour program) and television pilots (one hour program) produced pursuant to this New Media Agreement shall be deemed to be television series and television pilots for purposes of participation in the residuals collected pursuant to Articles 4 and 6, notwithstanding the fact that they are distributed through New Media and/or exhibit a window through New Media.
The relevant provisions of the new amendments were made retroactive to January 1, 2003, the effective date of the initial Agreement. In this way, for one hour television series, the potential exposure was capped at 300 subscribers, which put the new media agreement on equal footing with the legacy agreement.
Myths and FAQs
Although the SAG-AFTRA New Media Agreement is relatively new, many misconceptions have arisen about how it works and what types of productions are covered. Here are just a few common misunderstandings:
New Media Productions Aren’t "Real" Productions
The ability that productions have to shoot and make their content available directly to the public is not because of the New Media Agreement, but in spite of it. The unions agreed to new media contracts because it was a matter of survival for their members and they were not seeking to undermine those contracts by allowing others to opt out of them.
There is Pressure to Use the New Media Agreement
A new media agreement is not required; it’s available as an option to be used if you want to engage the unions on a new media feature film or television production, video game or other interactive digital media work. However , if you elect not to do so, the unions will likely object if you repackage the work for traditional theatrical or television distribution without using the appropriate agreement for that medium and engaging the unions at that point. Furthermore, if you treat the project as exempt from collective bargaining agreements without a bona fide reason, it is likely that the unions will file an unfair labor practice charge at the National Labor Relations Board.
Some People Are Above the Minimum Fees
The New Media Agreement doesn’t apply to all members of a union. For example, the minimum scale fee for principal performers in a new media feature film is $650 a day for principal performers with one speaking line. However, the minimum fee is $850 per day for principal performers who have two or more speaking lines or who have a significant role in the movie.
How to Enroll for Coverage
In order to obtain coverage under the SAG-AFTRA New Media Agreement, producers should contact SAG-AFTRA’s Franchise Contract Administration. The certification process is simple. A representative from the SAG-AFTRA New Media Department will walk the applicant through the steps necessary to obtain coverage. The production information submitted on the Coverage Application form can be entered directly into the system by the member of Data Retrieval. After the information is submitted and validated, a certificate will be issued within two business days. Application processing fees are applicable. Cost of annual certification fees are dependent on production classification. Once approved, producers must file additional information to keep their productions active under SAG-AFTRA’s New Media Agreement.
Employers also are required to apply for SAG-AFTRA New Media Agreement when employing actors covered under a SAG-AFTRA or AFTRA collective bargaining agreement. An approved roster of producers and distributors is provided by the SAG-AFTRA New Media Department. Producers are required to pay the SAG-AFTRA New Media Agreement employer registration fee during the application process.
Employers should refer to the Section 12 Employer Registration Rules and Procedures section on the SAG-AFTRA website for details about the registration process and requirements for renewing or transferring employer registration under the SAG-AFTRA New Media Agreement.
Examples and Case Studies
In the mid-2000s, companies like Funny or Die and CollegeHumor were starting to gain traction among the internet-savvy and younger demographics. With the advent of these online platforms came hundreds of thousands of creators who routinely uploaded their own content on various platforms, creating the perfect outlet for SAG-AFTRA members around the country to participate in a plethora of productions without having to break the bank to hire a union member. The SAG-AFTRA New Media Agreement provided an avenue for large companies like Funny or Die , CollegeHumor, and more to produce online content with union members without the massive financial burden of other, more traditional, SAG-AFTRA contracts. Similarly, the New Media Agreement paved the way for smaller and independent New Media producers to hire union members to act in their productions. The New Media Agreement has been a resounding success and increased the quantity and quality of productions produced with union members.